Gem Diamonds Raises Letšeng Resource Estimate

RAPAPORT... Gem Diamonds has increased its resource base at the Letšeng mine by 10 percent due to ‎higher-resource-grade estimates at the Lesotho-based operation. The company also raised ‎its Letšeng revenue estimate by 5 percent to $2,839 per carat. Sales from the mine ‎achieved an average price of $2,776 per carat in 2011. ‎

Gem Diamonds reduced its estimated resource base at the Ellendale mine in Australia to ‎‎3.98 million carats but increased its Ellendale revenue estimate by 16 percent. The ‎company did not provide an update on its plans to sell the ‎Ellendale mine announced in November.‎

Gem Diamonds maintained its total resource base estimate at around 29 million carats ‎with its resource base for the developing Ghaghoo mine in Australia unchanged at 20.53 ‎million carats. The Ghaghoo revenue estimate increased by 16 percent to $259 per carat.‎

The company is scheduled to publish its trading update for the first half of 2012 on July ‎‎30, 2012.‎